Setting up Xero (Scotland)

17/02/2025
Knowledge

How To

Firms operating a Client Bank account should, under the Law Society of Scotland’s rules, produce a single trial balance across their Office and Client accounts.

As LEAP only integrates through the Office account, any Client activity must be manually entered into the nominal ledger. We recommend that you consult with your accountant before following this advice to ensure that your Chart of Accounts is set up correctly. This guidance outlines the additional steps that you must undertake when setting up Xero, in addition to the guidance available here.

Firms using a float

You will need to create new nominal ledgers for the Office Float, Client Float, Client Credits Control and Client Bank in Xero. If you have multiple client bank accounts, you may wish to utilise separate nominal accounts for each physical bank account for simplicity.

You create the Office Float Control Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Current Asset’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

You create the Client Credits Control Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Liability’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

You create the Client Bank Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Current Asset’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

You create the Client Float Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Current Asset’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

Firms not using a float

You will need to create new nominal ledgers for the Client Control and Client Bank in Xero. If you have multiple client bank accounts, you may wish to utilise nominal accounts for each physical bank account for simplicity.

You create the Client Control Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Liability’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

You create the Client Bank Account as follows:

Click on Settings > Chart of Accounts
Click on Add Account
Select ‘Current Assets’ in the Account Type drop down
Enter a Code
Enter a Name
Enter an optional Description
Ensure the Tax box is set to ‘No VAT’

Last Modified Date

17/02/2025 3:28 am

Title

Setting up Xero (Scotland)

URL Name

Setting-up-Xero-Scotland

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